Prestige Institute Of Management And Research

PRESENTATION

ON :

STRATEGIC SURVEILLANCE, SPECIAL ALERT CONTROL AND OPERATIONAL CONTROL BUDGETING

Submitted To:Prof. Arpita Patel

Submitted By:Sakshi SoodSakshi VyasRupali RajputShivli GuptaBBA VI "C"

Surveillance basically means "close observation of something."

Strategic surveillance is designed to monitor a broad range of events inside and outside the company that are likely to threaten the course of the firm's strategy.

Despite its looseness, strategic surveillance provides an ongoing, broad-based vigilance in all daily operations

It is :

• A part of strategic control.

• General monitoring of multiple information sources .

• To uncover all the important yet unanticipated information.

• To observe events outside and inside the business that will affect the strategy of the business

• A control method

• Activities are carefully and tactically ananlysed

• It helps in capturing information that is otherwise lost in an organisation.

• Kept as unfocused as possible.

Surveillance v/s Environmental Scanning

• They appear to be similar but are completely different.

• Environmental Scanning focuses on a NEW PLAN. It scans the environment and provides information necessary for the new plan

• While, Surveillance is designed to safeguard the business strategy on a continuous basis.

Ways of doing Strategic Surveillance/SOURCES

1.Reviewing outside literature

2.Environmental factors

3.Attending trade conferences

4.Social networking websites

Special Alert Control

"A special alert control is the need to thoroughly, and often rapidly, reconsider the firm's basis strategy based on a sudden, unexpected event.“

• QUICK RESPONSE TO A SUDDEN AND UNEXPECTED EVENT

• A special alert control is the rigorous and rapid reassessment of an organization's strategy because of the occurrence of an immediate, unforeseen event.

• An example of such event is the acquisition of your competitor by an outsider. Such an event will trigger an immediate and intense reassessment of the firm's strategy.

• There should be a crisis team management to handle your company's initial response to the unforeseen events.

• There should be proper Contingency plans for such situations.

• The first step of Signal detection can be performed by special alert control systems.

• Example: Slow down of the US and European economy resulted in many Indian firms to reconsider their growth plans.

• The analysts of recent corporate history are full of such potentially high impact surprises (i.e., natural disasters, chemical spills, plane crashes, product defects, hostile takeovers etc.).

• While Pearce and Robinson suggest that special alert control be performed only during strategy implementation.

• Preble recommends that because special alert controls are really a subset of strategic surveillance that they be conducted throughout the entire strategic management process.

Operating Control

Operational control are designed to ensure that day-to-day actions are consistent with established plans and objectives. It focuses on events in a recent period. It concerned with action or performance

Budgetary Control

Budget:

• Budgets are the quantitative expressions of plans

• identify an organization’s objectives.

• Identify actions needed to achieve them.

• They form the basis for operations.

Budgetary control:

 A control technique whereby actual results are compared with budgets.· Any differences are made the responsibility of key individuals who can either exercise control action or revise the original budgets. it involves measuring ,analyzing ,reporting and feedback of the budget performance .

Types Of Budgets

• Operating Budgets

• Financial Budgets

• Variable Budgets

• Zero-base Budgets

Operating Budgets

• An operating budget is a statement that presents the financial plan for each responsibility centre during the budget period and reflects operating activities involving revenues and expenses.

• The most common types of operating budgets are:

Expense Budget

Revenue Budget

Profit Budget

Financial Budgets

• Financial Budgets outline how an organization is going to acquire its cash and how it intends to use the cash.

• Three important financial budgets are :

  Cash budget

Capital expenditure budget 

  Balance sheet budget

Variable Budgets

• A variable budget is one that makes allowances for any unforeseen changes or variations in costs or revenue for the company.

• There are fixed costs that are considered such as rent, loan payments, etc. but some costs may change such as labor costs, production costs, etc.

•  There are three types of costs that must be considered when variable budgets are being developed:

fixed,

variable, and

semi-variable costs.

• The problem in devising variable budgets is that cost variability is often difficult to determine and that they are often quite expensive to prepare.

Zero-base Budgets

• Zero-base budgeting (ZBB) enables the organization to look at its activities and priorities a fresh.

• Zero-base budgeting assumes that the previous year's budget is not a valid base from which to work.

• It forces department managers to thoroughly examine their operations and justify their departments activities based on their direct to the achievement of organizational goals.

THANK YOU